The Texas Finance Commission has adopted rules proposed by the Texas Department of Savings and Mortgage Lending. These rules were published in the November 15, 2024 edition of the Texas Register. These changes are effective November 23, 2024. Among other things, the Texas Department of Savings and Mortgage Lending has simplified two disclosures; the Texas Mortgage Company Disclosure (Cx3883) and Texas Mortgage Banker Disclosure (Cx2999). The wording has been updated and the format has changed slightly. We have updated our documents to match their new model forms. The new rules also removed any requirements for signatures on the documents. As a result, we no longer have signature fields on either document.
The rules also added a requirement for a lender’s signature on any Approval and Conditional Qualification Letters. These are our upon-request documents entitled: TX Mortgage Banker Conditional Approval Letter (Form B) (Cx16682), TX Mortgage Banker Conditional Approval Letter (Form B) (Cx16683), TX Mortgage Banker Conditional Qualification Letter (Form A) (Cx16684) and TX Mortgage Banker Conditional Qualification Letter (Form A) (Cx16685). We already had lender signatures on these documents so no change was needed.
The new rules also added a new condition for discount points, requiring an acknowledgment of evidence that the paid discount points were bona fide and that the discount points correspond to a reduced interest rate. We have determined that our TX Home Equity Discount Point Acknowledgement (Cx5029) already meets the conditions of this new requirement.
These changes are available for testing on Stage & Stage 2 servers and will take effect on November 23, 2024. If you have any questions or concerns, please contact Client Support at 1.800.497.3584.
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